Emerging Markets And BRICs Are Beginning To Look Cheap

Investing in supposed ‘growth’ stories is often seen as the holy grail, yet often ends up an unholy mess. Growth most spectacularly failed as an investment concept with the implosion of the technology bubble. And in the aftermath of the 2008 Great Recession, emerging markets were seen as the obvious choice for equity investors as they did not have the excess debt problems of the developed world. Once again investing in ‘growth’ has proved a disappointment – most especially for BRIC investors. No correlation between emerging market returns and economic growth According to Albert Edwards of Societe Generale, the story of superior growth for the emerging…